Following a tight season of exporting California oranges, there's optimism that the upcoming season will be better. "The market in the transition from Valencia oranges to Navels especially got really tight this season because of the weather. There was a lot of heat which damaged some crops and then there was also a thrip problem causing damage all of which lowered supply," says Peter Jurado, VP export sales LATAM for Epic Produce Sales. The company exports California oranges mainly to Mexico but also sends some shipments to Costa Rica, El Salvador, and other Central American countries.
In turn, that meant that some retailers took sizes of both Navel and Valencia oranges that they don't usually take, and that pushed prices higher on the available amount.
Price-sensitive markets
As for the demand for export oranges, it was high though Jurado says shipping volumes have largely lifted due to price. After all, those markets that Epic Produce Sales ships to are price-sensitive ones. "They care a lot more about the price, especially in Mexico. There comes a point where if the oranges reach a certain price, people stop buying it and it becomes a luxury commodity," says Jurado, adding that the exports also compete with Mexican Valencia oranges. "They aren't the same quality but the price is a little better so retailers are drawn to that. I'm sure when it switches back to Navels we'll be back shipping more regularly."
He also adds that citrus items tend to be more defined by growing origin than other commodities. "Prices are their own market depending on their origin. Also sometimes commodities that are of Mexican origin, it's expected that the pricing will be cheaper–even if it has the same specifications," says Jurado.
After all of this, there's optimism ahead for the upcoming 2024-2025 California orange season which begins in October. "I'm hearing that next season, it's going to be better both quality and size-wise. There's supposed to be more availability," says Jurado.
For more information:
Peter Jurado
Epic Produce Sales
Tel: +1 (480) 307-9370
[email protected]
https://www.epicproduce.com/